Nebraska’s security deposit law gives landlords the legal know-how they need to prevent issues like disputes over deductions or confusion about return timelines, as well as missed statutory deadlines and insufficient documentation at move-out.
This guide lays out everything landlords need to know about these rules, including maximum amounts landlords can request, how to store deposits, whether landlords must pay interest, legal reasons to deduct, returning deposits, handling disputes, and more.
Statutes Regulating Nebraska Security Deposits
Nebraska’s security deposit rules appear in Chapter 76, Section 76-1416 of the Nebraska Revised Statutes, which outline how landlords collect, hold, and return deposits.
Maximum Security Deposit Amounts Under Nebraska Law
Nebraska law allows landlords to collect a security deposit up to 1 month of rent. This statewide cap applies to all lease terms and contract lengths. Landlords can also request a separate pet deposit, which cannot exceed one-fourth of the monthly rent.
This pet deposit allowance is the only exception to the standard cap. No other statewide exceptions apply.
Security Deposit Storage Regulations
Nebraska law sets no specific rules for how landlords must store security deposits, so property owners may choose any secure method or account to store these funds. With no notice or receipt requirements for storage, landlords must simply keep the funds safe and secure until it’s time to return them.
Security Deposit Interest in Nebraska
Nebraska law does not require landlords to use interest-bearing accounts for security deposits, so property owners hold these funds without tracking or paying interest to tenants.
Making Security Deposit Deductions
Security deposit deductions give landlords a reliable way to maintain a rental property’s condition and protect its long-term value. When tenants default on rent or leave behind damage beyond normal wear and tear, landlords need access to the deposit funds to complete to protect the best interests of their property.
When Landlords Can Deduct
Nebraska landlords may draw from a tenant’s security deposit for these reasons:
- Repair costs for damage beyond normal wear and tear defined under state law
- Unpaid rent that remains due when the tenancy ends
- Cleaning expenses needed to bring the unit back to its earlier condition
- Replacement of missing fixtures or items included in the lease
- Costs tied to tenant actions that violate written lease terms
When Landlords Can’t Deduct
Nebraska landlords may not draw from a tenant’s security deposit for these reasons:
- Routine turnover cleaning that reflects ordinary use of the unit
- Minor cosmetic issues that arise through everyday living
- Repairs required because of age or failure of the rental’s systems
- Damage that results from events outside the tenant’s control
- Charges unrelated to the tenant’s conduct or lease obligations
Necessary Documentation to Accompany Deductions
Nebraska landlords must provide tenants with an itemized written statement listing each deduction and the amount withheld when returning any portion of the deposit. State law does not require receipts or invoices; only a clear written breakdown of the charges is required.
What to Do When Deductions are Greater Than the Deposit
Sometimes, tenant damage goes beyond the security deposit. In such situations, Nebraska landlords may request the remaining balance directly from the former tenant by issuing a written demand for payment.
Landlords who cannot recover the remaining balance can send the debt to a collections agency or file a claim in the local Nebraska small claims court.
Returning Security Deposits to Tenants
Nebraska law outlines how landlords must return any remaining security deposit funds after applying eligible deductions.
Required Timeline for Return
Nebraska landlords must return the refundable portion of the security deposit and provide a written, itemized list of deductions within 14 days after the tenant requests the deposit. Tenants may make this request after vacating the unit. Regardless of when the request is made, landlords must return the deposit no later than 30 days after the tenancy ends.
Method for Return
Nebraska law does not require landlords to use a specific payment method when returning a security deposit, so deposits may be returned by check or another agreed-upon method. If any portion of the deposit is withheld, landlords must include a written, itemized statement of deductions with the returned amount.
Penalties for Late Return
Under Nebraska law, if a landlord willfully withholds a security deposit or fails to provide the required written, itemized statement, the tenant may recover up to one month’s rent or twice the amount wrongfully withheld, whichever is less. Courts may also award court costs and reasonable attorney’s fees.
Security Deposit Disputes
If a tenant disagrees with how a landlord handles the security deposit, they maintain the right to raise a dispute. Tenants usually begin this process by requesting clarification in writing, then move to negotiation or, when necessary, to mediation or to filing a claim in court.
As a landlord, prepare for security deposit disputes by using move-in and move-out checklist tools, staying organized with accounting and bookkeeping, and outlining clear expectations in all future lease agreements. Strong documentation, knowledge of Nebraska law, and close attention to required timelines will also help reduce issues.
Using Condition Reports to Document Damage
When managing security deposits in Nebraska, landlords should use detailed move-in and move-out reports. These digital condition reports create a reliable record of a unit’s condition at each stage, helping landlords support deductions, answer questions, and simplify communication with tenants.
Landlords can use property management software to build digital reports with photos and videos directly from a smartphone. By documenting a property’s condition before move-in and after move-out, landlords make security deposit deductions far easier to justify.
Sign up for a free TurboTenant account to streamline documentation and keep all property records organized in one place.
FAQs: Nebraska Security Deposit Law
Can a landlord deduct painting from a security deposit in Nebraska?
A Nebraska landlord may deduct painting costs only when the work addresses damage beyond normal wear and tear. Routine repainting that comes with a typical turnover does not qualify for a deduction.
Are nail holes considered normal wear and tear in Nebraska?
Small nail holes caused by hanging pictures usually count as normal wear and tear in Nebraska, so landlords cannot deduct for them. Larger holes or wall damage that falls outside of everyday use may qualify for a deduction.
Who has to pay for carpet cleaning in Nebraska, the landlord or the tenant?
Nebraska landlords may deduct carpet-cleaning costs only when the cleaning exceeds what a standard turnover requires. Ordinary carpet cleaning does not qualify, but excessive dirt, stains, or clear damage may justify a deduction.
What happens if a landlord doesn’t return a security deposit within 14 days in Nebraska?
If a Nebraska landlord willfully fails to return the required deposit amount or provide an itemized deduction list within 14 days, the tenant may recover up to 1 month’s rent or twice the deposit amount, whichever is less, along with court costs and reasonable attorney fees.
